How To Calculate Restaurant Labor Cost

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When it comes to restaurants, labor cost is also vitally important. This is a major contributing factor to the amount you spend at your restaurant and should be calculated. Currently the CostBrain Software does incorporate labor cost into its costing software.

When it comes to labor cost you should calculate this into your equation for better food costing. Do you have employees that require special training? Do certain employees cost more per hour?

Recipes costs can cost more if you need specialty chefs to create them.

A Simple Way to Calculate the Cost of Restaurant Labor
Multiply the hourly rate by the total number of hours worked. Take for example: 80 hours times $4 an hour equals $320 and 100 hours times $9 an hour equals $900. Make sure that you divide a salaries employee by the number of weeks in a year or months in a year if doing a weekly or monthly budgeting.

Why We Calculate This Cost
There are various reasons why this cost is important. We’ll outline some of the reasons we think its important and a factor that should be considered in your overall costs.